Dollar strengthens again as risk-off sentiment persists

Dollar strengthens again as risk-off sentiment persists

The dollar is stronger in a movement towards safe havens amid ongoing fears of stimulus pullback and delta variant risk. Greenback outperforms peers ahead of ECB, and Bank of Canada rate decisions this week and as global investors take risk off the table as global growth outlook appears to slow.

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  • FX Rates
    September 8, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    Thin trading and a flight to safe havens sent the greenback to one-week highs. Pres. Biden will reveal a 6-pronged strategy to combat the latest wave of coronavirus today as 75% of US adults have received at least 1 dose of a vaccine.

    GBP

    The pound is weaker for a third day versus both the dollar and euro. BoE Governor Andrew Bailey’s comments will be in focus today as he speaks in front of the Treasury Select Committee.

    EUR

    The euro slid again for a third day in fix-related flows ahead of Thursday’s ECB meeting. Nearby support is the 55DMA of 1.1813. The ECB is expected to conduct a small tapering of asset purchases this week.

    CAD

    Broad US strength sends USD/CAD higher. Markets will listen to BoC comments following the rate decision due out this morning. A reduction in asset purchases is expected by end of year.

    ASIA/PACIFIC

    USD/JPY pulled back slightly amid yen buying and in a flight to havens. Asian markets are concerned about economic impacts of the delta variant and possible future lock-downs.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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